Australian Dollar Extends Slide

The Australian dollar extended slide against the other major currencies in the Asian session on Tuesday, as decline in commodity prices curbed demand for commodity-linked currencies.

The benchmark S&P/ASX 200 index is currently down 61.10 points or 1.12 percent at 5,380. The broader All Ordinaries index is also down 57.70 points or 1.07 percent at 5,356.

Energy producers and mining companies led declines on Australian commodity market. Iron ore, Australia's biggest export also sank.

Meanwhile, trading volumes were thin and expected to remain so this week, ahead of the Christmas holiday and the New Year's holiday.

On Monday, the Australian dollar rose 0.08 percent against the Canadian dollar and 0.03 percent against the NZ dollar.

In the Asian trading today, the Australian dollar fell to a 4-1/2-year low of 0.8093 against the U.S. dollar, from an early high of 0.8133. If the aussie extends its downtrend, it is likely to find support around the 0.79 area.

Against the Canadian dollar, the aussie dropped to a 16-month low of 0.9400 from an early high of 0.9460. On the downside, 0.937 is seen as the next support level for the aussie.

The aussie edged down to 97.17 against the yen from an early high of 97.67. Continuation of bearish trend may lead the aussie to a support around the 95.12 mark.

Pulling away from early highs of 1.0519 against the NZ dollar and 1.5027 against the euro, the aussie depreciated to a 6-day low of 1.0475 and a 5-day low of 1.5111, respectively. The aussie may test support near 1.03 against the kiwi and 1.53 against the euro.

Looking ahead, Canada GDP for October and U.S. durable goods orders for November, U.S. final third-quarter GDP data, house price index for October and personal income and spending data for November are due to be released in the New York session.

At 9:55 am ET, U.S. Reuters/University of Michigan's final consumer sentiment index for December is due to be released.